WGU C213 ACCOUNTING FOR
DECISION MAKERS LATEST 87
REAL EXAM QUESTIONS AND
CORRECT ANSWERS 2023-2024
1. What does accounting focus on ?The impact a business's activitieshave on
its overall financial performance
2. Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of
time State- ment of cash flows
3. Which users would have a primary concern with an organization's ability
to provide healthcare benefits Employees
4. Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company ThePublic
Com- pany Accounting Oversight Board (PCAOB)
5. What has had the most significant impact on accounting
practices Infor- mation technology
6. What two items of information are revealed on the balance
sheet? Choose 2 answers: Ownership.
Debt
7. Which term is defined as the residual interest in the net assets of a
, company Owners' equity
8. A corporation has total liabilities of $300 million, total owners'
equity of
$100 million, and current assets of $50 million.
What is the value of the firm's long-term assets $350 million
9. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing In 2014, a company provides services to a customer for which cashwill be
collected the next year (2015).
10. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company Cash flows from
financing activities
11. Where would an investor find a summary of a company's significant
accounting policies In the notes to financial statements
12. Which assurance does an external audit report provide for its readers?-
: The company's financial statements fairly reflect its financial position
13. Reliable: Information that can be verified
14. Relevant: Information having to do with the matter at hand
15. Material: Information that is important enough to make a difference
16. Conservatism: Information related to recognizing losses as they occur
17. steps in the decision cycle: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
, 5 Implement decision
18. Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
What is the price-earnings (PE) ratio for this company 11.0
19. What is consistent with a continual decline in gross profit if the firm's
cost of goods sold remains the same Continual decrease in sales
20. Which two cash flow adequacy ratios represent a cash cow -
$6,991/$5,486. $5,220/$1,875.
21. Which formula yields a cash times interest earned ratio of 11 Cash
before interest and taxes of $11,000 / cash paid for interestof $1,000
DECISION MAKERS LATEST 87
REAL EXAM QUESTIONS AND
CORRECT ANSWERS 2023-2024
1. What does accounting focus on ?The impact a business's activitieshave on
its overall financial performance
2. Which report summarizes cash collections and cash expenditures
from operating, investing, and financing activities over a period of
time State- ment of cash flows
3. Which users would have a primary concern with an organization's ability
to provide healthcare benefits Employees
4. Which body regulates a certified public accounting firm's audit practices
when the firm is auditing a large publicly traded company ThePublic
Com- pany Accounting Oversight Board (PCAOB)
5. What has had the most significant impact on accounting
practices Infor- mation technology
6. What two items of information are revealed on the balance
sheet? Choose 2 answers: Ownership.
Debt
7. Which term is defined as the residual interest in the net assets of a
, company Owners' equity
8. A corporation has total liabilities of $300 million, total owners'
equity of
$100 million, and current assets of $50 million.
What is the value of the firm's long-term assets $350 million
9. Which situation should result in revenue recognition on the income state-
ment for the year ending 12/31/14 if the firm is using accrual-basis account-
ing In 2014, a company provides services to a customer for which cashwill be
collected the next year (2015).
10. Which category on the statement of cash flows summarizes cash receipts
and payments to owners and creditors of the company Cash flows from
financing activities
11. Where would an investor find a summary of a company's significant
accounting policies In the notes to financial statements
12. Which assurance does an external audit report provide for its readers?-
: The company's financial statements fairly reflect its financial position
13. Reliable: Information that can be verified
14. Relevant: Information having to do with the matter at hand
15. Material: Information that is important enough to make a difference
16. Conservatism: Information related to recognizing losses as they occur
17. steps in the decision cycle: 1 Prepare financial statements.
2 Analyze financial statements.
3 Gather information.
4 Make decision.
, 5 Implement decision
18. Partial financial information for a company is as follows:
Current assets $36,543
Total assets $58,719
Current liabilities $24,824
Total liabilities $48,561
Stockholders' equity $10,158
Sales $46,997
Net Income $ 3,761
Market value of shares $41,316
What is the price-earnings (PE) ratio for this company 11.0
19. What is consistent with a continual decline in gross profit if the firm's
cost of goods sold remains the same Continual decrease in sales
20. Which two cash flow adequacy ratios represent a cash cow -
$6,991/$5,486. $5,220/$1,875.
21. Which formula yields a cash times interest earned ratio of 11 Cash
before interest and taxes of $11,000 / cash paid for interestof $1,000
